Mega-TRON

Good morning. Ethereum developers are preparing for opening night, TRON heads down a LUNA-like path, and M&A activity may be about to heat up. All that and some more today in the CT5!

Market Update (as of 9:18am ET):

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Top 5:

1. Tron becomes DeFi’s third-largest blockchain thanks to Terra-like stablecoin. The Justin Sun-led blockchain is now the third-largest DeFi blockchain with more than $5.9 billion in TVL, up 44% over the past month. Other blockchains like Ethereum, Polygon, Solana, Avalanche, BNB Chain, and Fantom have dropped double-digit percentages during that same time frame. Much of Tron's recent growth can be attributed to the launch of the blockchain's algorithmic stablecoin, USDD. Tron stablecoin lending protocols like JustStables, SunSwap, and Sun.io have seen a sizeable uptick in TVL over the last month and are offering rates north of 20%. It all sounds a little too familiar.

2. Top crypto firms go on the hunt for acquisition targets as market crashes. During interviews with CNBC over the last week, executives at both FTX and Ripple indicated they are on the lookout for merger and acquisition opportunities. Brett Harrison, president of FTX US, said the company is looking to acquire companies that will help them acquire more users or regulatory licenses and that the company is a strong position in regards to capital and cash. 2021 saw $55 billion in M&A activity in the crypto space, versus only $1.1 billion in 2020.

3. Merge ahead: Ethereum’s dress rehearsal (and a hiccup). As Ethereum developers push forward to proof-of-stake, the network reached a major milestone on that journey by launching the Beacon Chain on the Ropsten test network. The Beacon chain is essentially a parallel proof-of-stake version of the Ethereum main network, which currently runs using proof-of-work as the consensus mechanism. The Ropsten testnet is the longest running proof-of-work testnet, and the transition to proof-of-stake is being hailed as a "dress rehearsal" for the Merge. The so-called hiccup that occurred last week, saw a "reorg" of blocks in the chain. Reorgs occur when some of a network’s validators hold a different view on which block was last added to the blockchain. While the reorg was a minor incident with no negative consequences, it does highlight the complexity of the move to proof-of-stake for the Ethereum network.

4. Polygon increases KYC scrutiny of potential investments and grants in India. Layer 2 side chain Polygon is requiring extensive Know-Your-Customer details to provide funding, investments, grants or financial support to potential partners in India at a time of increased regulatory scrutiny in the country. The Indian government has recently imposed new crypto taxes and cut off payment processors from local crypto exchanges. These measures have led Polygon to take a conservative route when funding new entities or making investments in the country.

5. Binance Labs raises $500M fund for web 3, blockchain investments. The venture capital arm of the crypto exchange has raised $500 million to invest in web3 and blockchain companies. "The goal of the newly closed investment fund is to discover and support projects and founders with the potential to build and to lead Web 3 across DeFi, NFTs, gaming, Metaverse, social, and more,” Binance CEO Changpeng "CZ" Zhao said.

Updates and other stories:
- Only 80 merchants signed up for Nigerian CBDC...Read More
- SoftBank, GGV lead $66M round for web3 infrastructure firm...Read More
- Singapore ready for DeFi after crypto firms leave for Dubai...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.